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fomenos
3 years ago
10

Hooper Printing, Inc. has a bond issue outstanding with 14 years left to maturity. The bond issue has a 7% annual coupon rate an

d a par value of $1,000, but due to changes in interest rates, each bond's value has fallen to $749.04. The capital gains yield earned by investors over the last year was 25.10%. What is the expected current yield for the next year on this bond issue
Business
1 answer:
lord [1]3 years ago
6 0

Answer:

9.35%

Explanation:

Annual coupon amount = Coupon rate × Fave value of bond = 7% × 1,000 = $70.

Expected current yield = Annual coupon amount ÷ Current market price per bond = $70 ÷ $749.04 = 0.0935, or 9.35%.

Therefore, the expected current yield for the next year on this bond issue is 9.35%.

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Q 5.7: Hale Company sells merchandise on account for $1,000 to Long Company with credit terms of 2/10, n/30. Long Company return
Ghella [55]

Answer:

Ans. The amount of the check is $784

Explanation:

Hi, from the initial balance of $1,000, we have to substract the returned merchandise, which was $200, therefore, Long Company owes Hale Company, $800 if Long Company pays within day 11th to 30th of the day of purchase. Since Long Company plans to pay within the first 10 days from the date of purchase, they would be granted a 2% discount on their remaining balance, therefore, the amount that Long Company has to write the check for is:

Check=Remaining Balance*(1-Discount)

It should look like this

Check=800*(1-0.02)=784

So, Long would have to write a check for $784, that is if it pays within the first 10 days from the date of purchase.

Best of luck.

8 0
3 years ago
The obligations of the business to its creditors are called liabilities <br>A. True<br>B. False​
scoray [572]

Answer:

A. True because a liability is what you owe

5 0
3 years ago
A taxpayer places a $50,000 5-year recovery period asset in service in 2019. This is the only asset placed in service in 2019. A
Evgesh-ka [11]

<u>Answer:</u>$50000

<u>Explanation:</u>

Recovery period of the asset means that the company starts to realize its depreciation for the assets. In the recovery period the taxpayer will start to write off the asset with the depreciation value calculated using the useful years of the asset.

Half year convention means that the assets have been used for the first half of the year and the rest of the depreciation amount will be deductible at the end of the year. So the entire useful value of the asset is taken for the amount of cost of recovery in the year 2019.

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4 years ago
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